Agencies embrace credit cards
- By Colleen O'Hara
- Jun 16, 2000
Agencies' use of government credit cards is on the rise, with sales estimated
to exceed $16 billion this fiscal year, according to Frank Pugliese Jr.,
commissioner of the General Services Administration's Federal Supply Service.
GSA manages the governmentwide SmartPay contract, which provides agencies
with purchase, travel and fleet card services. The government can save around
$54 per transaction by using a credit card over a traditional paper-based
"It made a lot of sense for government to move in that direction," said
Pugliese, who was speaking Thursday at a government forum sponsored by Visa.
GSA expects SmartPay sales to exceed $16 billion this fiscal year, up from
around $14.8 billion last fiscal year. Sales as of the second quarter of
this fiscal year already topped the $6 billion mark.
Not only is the average size of a credit card transaction growing, but agencies
are starting to use the cards in more sophisticated settings, said Dennis
Fischer, former GSA executive and current vice president for sales and integrated
solutions at Visa. "One of the growth opportunities is to use purchase cards
in larger" transactions, he said. Visa is one of the five vendors on the